Managing Risk when Investing in Precious Metals - dummies

Managing Risk when Investing in Precious Metals

By Paul Mladjenovic

Part of Precious Metals Investing For Dummies Cheat Sheet

All types of investing involve risk, including precious metals. This chart shows some of the major choices you have for investing in precious metals based on risk:

Type Relative risk level Most common direct type of risk
Bullion coins and bars Low Market, physical
Numismatic and collectible Medium Fraud, physical
Major mining companies Low-medium Market, political
Midsize mining companies Medium-high Market, political
Junior mining companies High Market, political
Mutual funds Low Market, political
Exchange traded funds Low-medium Market, political
Futures Highest Market, exchange
Options: covered call writing Low Market
Options: buying calls and puts High Market